CEH Report

Table of Contents

Abstract

The United States continues to be the largest consumer of lactic acid, followed by Western Europe and China. The United States surpassed Western Europe as the largest consumer of lactic acid in 2001–2002 with the commissioning of NatureWorks' polylactic acid (PLA) plant in late 2001. In mid-2009, NatureWorks expanded its PLA capacity in the United States with an additional 70 thousand metric ton unit. In 2008, PURAC started up a 100 thousand metric ton lactic acid plant in Thailand.

In the last several years, lactic acid consumption for industrial applications has surpassed the food and beverages industry as the leading market for lactic acid. This shift is expected to continue as growth rates for industrial uses will be much higher than growth rates for other uses. This is a result of the continued high growth of PLA applications. It is expected that by 2013, industrial applications will account for more than half of global lactic acid use.

The following pie chart shows world consumption of lactic acid, its salts and esters:

In recent years, Asia has become nearly equivalent to Western Europe as a consumer of lactic acid products. All three major regions—the United States, Western Europe and Asia (driven mainly by China)—will continue to show strong annual growth at 7%, 9% and 5.5%, respectively, in the next few years. Globally, lactic acid consumption will continue to increase significantly, at about 7% per year from 2008 to 2013.

Growth in demand for lactic acid, its salts and esters in industrial applications will be driven mainly by lactic acid–based biodegradable polymers and, to a lesser degree, lactate solvents. The use of polylactic acid, especially in the plastics packaging, container and cutlery markets, is being highly promoted because of its environmentally friendly characteristics. Environmental benefits include product biodegradability; composting of waste by-products from PLA production; growth in the use of plant-based materials, which reduces carbon dioxide in the atmosphere; and the potential energy saved versus conventional polymer production. In the United States, PLA demand for industrial applications such as fibers, containers and packaging is expected to continue to increase. Likewise, demand for PLA will increase significantly in Western Europe, mainly for packaging uses.

The main obstacles to large-scale use of biodegradable lactic acid–based polymers in packaging applications are cost, environmental legislation concerning waste disposal and composting, and consumer attitudes and behaviors concerning the environment. Also, there is ongoing debate about the true amount of energy (often in the form of fossil fuels) consumed to produce PLA from raw materials such as corn. With large-scale production, prices are expected to continue to decline; however, lactic acid–based biodegradable polymers are expected to remain more expensive than commodity polymers in the near future.

The food and beverages market will also continue to drive lactic acid growth. In the United States, lactic acid will continue to be used mainly as an acidulant but will also continue to grow in the ready-to-eat meat industry. However, growth will depend on the prevailing economic situation. Likewise, growth in this market for Western Europe and Japan will be moderate. In China and Other Asia, growth in the food and beverages market will be stronger as lactic acid will continue to be used in local foods, as well as food fortifiers and pH adjusters.

Pharmaceuticals and personal care products have become an important market for lactic acid, its salts and esters. This market will continue to increase steadily in the United States and Western Europe, while China will experience stronger growth in this area. Uses include intravenous solutions, shampoos, soaps, antiaging alpha-hydroxy skin creams and moisturizers.